GST 2.0 Benefits: Skoda Cars Get cheaper By Up to ₹5.8 Lakh

Skoda India has revised its car prices ahead of the upcoming GST 2.0 reforms offering buyers significant benefits across its lineup. The price cuts combine confirmed GST reductions and limited-time festive offers allowing total savings of up to ₹5.8 lakh on select models before the new GST rates come into effect on 22nd September 2025.

From the compact Kylaq to the premium Kodiaq, Skoda buyers can now enjoy lower ex showroom prices making it an attractive time to purchase a vehicle. Here’s a detailed look at the new pricing, GST changes and the savings across Skoda’s models.

What Changed For Skoda in GST 2.0 – New GST Rates for Skoda Cars

India’s GST 2.0, effective 22nd September 2025, rationalises automobile taxes, simplifying the previous complex structure. Key changes include:

• Sub‑4-metre small cars- GST reduced to 18% (previously 28% + cess)
• Larger cars and SUVs (over four metres)- Flat 40% GST, with the removal of compensation cess
• Electric vehicles (EVs)- Remain at 5% GST so pricing for battery electric Skoda models is mostly unaffected by the ICE focused changes

This reform reduces the effective tax burden making most Skoda vehicles more affordable.

Skoda Models and GST 2.0 Impact

Skoda’s portfolio mainly includes vehicles over four metres, so most models now fall into the flat 40% GST slab, leading to meaningful savings, particularly on premium SUVs like the Kodiaq.

The Kylaq, being a sub-4-metre SUV, benefits from the 18% small-car slab, offering substantial reductions on ex-showroom prices. Skoda has also added festive discounts available until 21st September 2025, which, when combined with GST cuts, increase total potential savings before GST 2.0 officially applies.

Skoda New Pricing After GST Cut

Here’s a quick summary of the GST benefits and festive offers across popular Skoda models

Note: GST-linked reductions are permanent from 22nd September 2025, while the festive offers expire on 21st September 2025, unless extended by the company.

Why GST Benefits Differ Across Models

The difference in savings across Skoda models is due to:

• Kodiaq: A premium SUV, it moves from a GST + cess structure to a flat 40% GST. While the percentage drop is moderate, the absolute rupee reduction is high (up to ₹3.3 lakh).
• Kushaq & Slavia: Mid-size and sedan models also shift to 40% GST. The percentage reduction is smaller, but still offers noticeable savings (₹66,000 and ₹63,000 respectively).
• Kylaq: Being a small SUV under four metres, the GST cut to 18% results in a larger percentage reduction, giving buyers substantial savings in absolute terms for a compact vehicle.

Skoda Kylaq New Pricing After GST Cut

The Kylaq is the most affected by the small-car GST reduction. Ex-showroom prices post-GST cut (effective 22nd September 2025) are:

These cuts make the Kylaq highly competitive in the compact SUV segment.

Skoda Slavia New Pricing After GST Cut

The Slavia also benefits from GST reductions, with variant-wise savings ranging between ₹46,000 and ₹63,000:

Festive offers of up to ₹1.2 lakh are available on select trims booked before 21st September 2025.

Skoda Kodiaq and Kushaq New Pricing After GST Cut

Kodiaq buyers can save the highest amount in absolute terms due to the removal of cess and the flat 40% GST, while Kushaq buyers also benefit from combined GST cuts and limited-time festive discounts.

Timing Strategy – When to Buy

• Pre-21 September: Buyers can enjoy both GST-linked reductions and festive offers for maximum savings.
• Post-22 September: GST-linked reductions continue, but festive offers expire. Confirm variant-wise ex-showroom prices before booking to ensure the correct rate.
• Higher trims: For premium models like Kodiaq, buying higher trims early can maximize absolute savings.
• Small SUVs like Kylaq: Larger percentage reductions make it more cost-effective under the 18% GST slab.

Skoda’s proactive pricing strategy allows buyers to save substantially before GST 2.0 implementation. With total savings reaching up to ₹5.8 lakh on Kodiaq ₹3.1 lakh on Kushaq ₹1.83 lakh on Slavia and ₹1.19 lakh on Kylaq the brand ensures attractive purchase opportunities ahead of the festive season. Buyers can maximize benefits by planning purchases around the GST 2.0 effective date and combining pre GST offers with permanent tax reductions.